Supercomputer Maker Expects Loss in 2011 (CRAY)
One of the most venerable names in high-performance computing, Cray Inc. (NASDAQ: CRAY), expects to report a loss 2011. The company spelled out the problem in a press release: During the fourth quarter of 2011, the Company did not complete…
One of the most venerable names in high-performance computing, Cray Inc. (NASDAQ: CRAY), expects to report a loss 2011. The company spelled out the problem in a press release:
During the fourth quarter of 2011, the Company did not complete the acceptance process on the Cray XK6 upgrade at Oak Ridge National Laboratory which was necessary to achieve the previously stated 2011 outlook. The Company’s efforts to complete system acceptances during the fourth quarter were adversely impacted by further supply issues related to a key component. Based on preliminary results, total revenue for 2011 is expected to be about $230-$240 million and total operating expenses are expected to be in the range of $95 million. Based on these preliminary results, the Company expects to report an operating loss for the year.
The good news is that the company expects to book the revenue in 2012, which boosts Cray’s revenue outlook for 2012 to $400-$420 million.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
